advice, BC, hype, prices, supply

Boxing Day Blow-out Sale!

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46 Comments

Are you out there looking for deals today?

Doing some boxing day sales shopping?

Want to save big?

Jay posted a couple of recent discounts in the Vancouver real estate market, and boy do we have some deals for you.

If you act fast  and buy now you can save enough to buy more than 50 brand new 2013 Mercedes SLKs.

SLK, get 50 of 'em

50 of those would cost about $2.9 million, which is how much this property has just been reduced by now asking only $9.98 million.

Of course that just gets you land, if you want to get a home as well why not try this property out by UBC complete with an authentic 1997 style concrete and steel mansion.

Original asking price $10,380,000 it can now be yours for only $7,990,000!

Happy bargain hunting!

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Girlbear

@Bullbullbull

You are playing a momentum trade, not one based on fundamentals. Be careful on that. They tend to be a great ride up, and a hideous ride down.

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Joe Mainlander

Re: Conservatives, blood, hands etc….

At least someone’s been moving on tightening lending standards, Con or Lib.

And at least none any of the opposition parties are telling Flaherty not to tighten lending standards. At least they haven’t yet.

The housing bubble is like a big elephant in the room, no party wants to mention it ’cause no party knows what to do about it.

From that fantastic Globe article posted below, it seems that a lot of it was spurred on by the CMHC acting on it’s own as a Crown Corporation.

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Apocarypse Mao

It’s not that the other parties weren’t challenging… they were egging the Cons on and demanding that they stimulate the economy , instead of letting a healthy correction occur. If the Cons were real free marketers, they wouldn’t have intervened. They could be blamed… but for pulling a typically liberal intervention. And since the Libs were calling for it, they probably would have done the same. It is a bubble and it started in 2002-3 just a little after the US bubble started. There were lots of flippers then, more than post 2007. There were overnight lineups and tales on Global of folks flipping and making big $. Most open houses I visited were zoos with multiple offers coming in. I knew I was priced out by 2005… and the Cons had not been elected yet. They are all the… Read more »

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Girlbear

@Realitycheck

LOL. I didn’t “thumb you down”. If I were to hazard a guess though as to why…you did not provide enough basis for your “houses seem to be listed for $100k more” premise. As in what was your sample size, did you factor in renos, were these specific homes you saw that were listed $100k higher than 2 years ago etc…In short, what was your factual evidence for this $100k increase theme.
Also no one buys into “wish asking prices” anymore. As we have seen from Village Whisperer’s site, sellers do all sorts of strange things when maneuvering their prices around in a low volume market.

To be fair it doesn’t differ much from posters saying rental prices are down on CL without providing support or methodology for that statement.

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RealityCheck

Land Baron, Girlbear

Thanks for the input. I am at a loss to explain whats going on in my neighborhood when at the same time Richmond implodes. Either the Richmond sellers are crazy or the Surrey ones are. Confused about all the thumbs down I got.

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rp1

Happy Earthquake everybody. I felt it.
http://earthquake.usgs.gov/earthquakes/eventpage/uw60485982#summary

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real_professional

@Mao. Please! Flaherty dropped lending standards on his first budget in 2006. The surge between 2001 and 2006 was based on alot of factors including a growing Canadian economy on the back of commodites and interest rates that had been cut after 911. 2002 to 2006 were global boom times, real estate was expensive pre conservatives. but in the policy induced bubble that followed, on the conservative watch, is what caused the us style housing extremes that we are currently enjoying. As for blaming the other parties for not challenging the conservatives on tinkering with mortgage lending standard. This is true, I even wrote to many poltical parties and published an article in national newspaper on this lack of opposition. I don’t know how you think but I normally blame a person who makes a mistake for making a mistake… Read more »

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Anonymous

Burnaby RCMP received a “deluge” of 911 calls from Boxing Day shoppers stuck in traffic in mall parking lots. Calls were coming in from noon to night– prompting RCMP to issue a public warning that being stuck in a busy mall parking lot on Boxing Day is not an emergency requiring 911.

Just sums up the sheer stupidity of Metro Vancouver Boxing Day sheeple consumers. Herds of Boxing Day shoppers look like lemmings going over a cliff. Too bad Boxing Day went this way. It used to be about spending time with family. Sucks to work on Boxing Day. Every holiday just means more hell for retail workers.

http://www.vancouversun.com/news/metro/Burnaby+Boxing+shoppers+call+traffic/7746113/story.html

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Bull! Bull! Bull!

@Girlbear – It doesn’t matter if I think it’s a good idea or not. No one is going to listen to me either way. What matters is if I make MONEY or not. That’s the way of the world. It might be time for you bears to put away your childish notions, stop worrying about being ‘right’ and ‘correct’, and realize it’s all about money.

It’s a new year. Maybe time for a new, more realistic perspective.

Speaking about money, how many of you missed the US housing bottom? How many of you will miss the Vancouver housing bottom?

Happy New Year, bears 🙂

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Apocarypse Mao

@ #3 real_professional: “a vote for the conservatives means blood on your hands” The biggest gains in the housing market were between 2002-2007. The Cons came in as a minority in Feb 2006. This bubble was started under the Librals watch. The CMHC started lowering standards in the late 90’s. And both the Libs and the NDP were screaming for stimulus in 2008 when the financial crisis hit. The Cons gave them what they wanted. They are all complicit. No party, or politician at the federal or provincial level, that I know of, has ever made any issue of rising house prices, or made any mention of a bubble, or even tried to start a dialog about trying to bring house prices down any any way. Even the ‘champions of the people,’ the provincial NDP, have made no mention of… Read more »

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Anonymous

Garth Turner is blogging about increase in Genworth mortgage coverage backed by Feds. This could re-inflate housing prices. Real estate lobby has convinced flaherty try to release more easy credit.

“Six years ago F gave us 40-year mortgages and zero down. Four years ago the amount of government mortgage insurance was doubled. Three years ago came the cheapest mortgage rates in history. In between were new tax credits for first-time buyers and free money for renovations – all designed to goose housing. Then he pulled back hard last summer, sending the market into a dive. Now, desperate, he lays on more gas.”–Garth Turner

http://www.greaterfool.ca/2012/12/26/the-soft-landing/

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real_professional

.. just read the article.

It was great but I keep wondering why the hell is it main stream now. I have been saying Dodge was the only one with his head screwed on straight for years! Flaherty is 100% to blame for the bubble and a vote for the conservatives means blood on your hands. Sorry, had to vent.

The best part was the interview with Dodge where he said the role of lending standards should be taken out of the hands of elected officials.

Thank god mainstream is catching on, hopefully the credit rating agencies do something.

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Girlbear

@BullBullBull

That news was last week.

Also are you seriously telling me you think it’s a good idea for Canada to follow the US etc into the unlimited credit easing abyss further?

I mean really. Do you really think this is good for the country as a whole to have everyone levered up to the hilt? Because well you know, it has worked so well in other places…

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Bull! Bull! Bull!

And with the stroke of a pen credit is eased.

http://www.canadianmortgagetrends.com/canadian_mortgage_trends/2012/12/genworth-canada-guaranty-get-new-limit.html

Canada’s private mortgage default insurers are about to get more breathing room. Starting January 1, 2013, private insurers can have up to $300 billion (combined) of insured mortgages on their books. The current limit is $250 billion.

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southseacompany

@32 G: They need to get 60%-80% of the units pre-sold depending on the project. This would vary by whether it’s wood-frame or concrete, or how big the development is, or what they can negotiate with the bank. I’ve read that banks have upped the % in the last few years. They also only finance smaller phases. Things are changing now, but that Kabana building was most likely pre-sold a few years ago, in a different market. I suppose a developer could go ahead if they have a few units left and hope to sell after. It may depend on the developer and/or the amount of units. Interesting story; one of my coworkers said that a friend of his from HK bough 20 units in a recently sold out Metrotown development. He bought many months before the opening day ‘wow… Read more »

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G

so how many % presold units needed to get finance?

and when you said if it’s built, it’s sold. but from my understanding, some buildings in downtown the developers still “own” several units after it’s built.

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southseacompany

@#21 Makaya:

Thanks. That was a G & M great article!

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Girlbear

@Patiently Waiting

Yes, I see what you mean. Ummm I will take curtain number one please…

http://vancouver.en.craigslist.ca/bnc/apa/3454865585.html

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southseacompany

#25 Patiently Waiting: Without being too specific, I work in the development industry. Consulted for some of the developers you mention, and others. They all get financing. This was discussed at meetings. The first step is getting 3rd reading on rezoning; they seem to get some financing then. The next is getting some % of pre-sales, they get the rest after that. They use their own money to buy the land and get the rezonings, but they all use financing to build. Construction costs are a lot; up to $400/sf for concrete. For a 150 unit tower with, say, 800 sf gross unit sizes, that’s 120,000 sf X $400 = $ 48 million. If they have a few buildings to build they would need a few $billion. No one has that kind of money. Just buying the land and getting… Read more »

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Landbaron

And by ‘hotcakes’ I mean a few

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Landbaron

@RealityCheck

Couldn’t those sub $800k homes selling like hotcakes be previous $1mill+ listings that couldn’t sell?

Just a thought

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Patiently Waiting

re Girlbear:

I think its market price for a totally new 2 bdrm near Metrotown. Its a little beyond my desired price-range and not quite in my ideal area.

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Patiently Waiting

re Apocarypse Mao:

True, that could be the case. The Craigslist ad says “Choose from one and two bedroom suites available in 17 different floor plans.” and there are only 60 suites in the building. From that, it appears almost the whole building went right on the rental market, whether its owned by the developers or investors.

Depending on how deep the developers pockets are, some buildings could get built without many pre-sales. I’m sure it wouldn’t stop ONNI or BOSA. Don’t know about this developer (Elegant Development Inc. and Kraftsmen Holdings).

Waiting for the market to come back means these units will now be sold used, so I don’t understand how they could get a better price.

A couple of units appear to be for sale by flippers:

http://www.burnabycondo.com/kabana-6888-royal-oak-avenue-burnaby

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Groundhog

MLS #F1216215

This home in White Rock has been for sale for about a year and half. Drove past it today and it has a sold sign on it, but still on MLS. Just curious if anyone is able to find out the final sales price on this.

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Girlbear

Problem is, do the “masses” read the Globe…?

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